Determine Which Type of License You Need:

New and Used

Used Only

Motorcycles

Trailers/Mobile Homes

1

Obtain a Permanent Business Location

Check the Illinois Administrative Code, Section 1020.10 for the requirements. Once you’ve met them, you’ll be inspected by Secretary of State personnel to determine if the established place of business requirement is met.

2

Attend Dealer Training Classes

Individuals applying for a used car dealer, broker, or wholesaler license for the first time are required to attend an eight-hour training course provided by the Illinois Secretary of State's office. The training must be completed prior to a license being issued. The training will cover a wide variety of topics which affect dealerships, for example, licensing requirements, applicable taxes and consumer protection laws.

Compile the Required Documents

A statement that the applicant has been approved for registration under the Retailers' Occupation Tax Act by the Department of Revenue

4

Obtain Proof of Liability Insurance

A certificate of insurance in a solvent company authorized to do business in the State of Illinois must be included with your application. The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, two or more persons in any one accident, and $50,000 for damage to property. Trailer and mobile home dealers are exempt from this requirement.

5

Obtain Your Auto Dealer Bond

Vehicle dealers must be bonded for the first 36 consecutive months of operation, so long as they have not been delinquent or deficient in the transmittance of title/registration fees or taxes.

Bond Amount Required:

$20,000 for all auto dealers

It’s important you understand how surety bonds work and that you're responsible for paying claims in full.

Testimonials

Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.

David Tillotson

Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.